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Bucharest
May 5, 2021
BUSINESS BUSINESS COMPANIES ECONOMY

Romcab reports revenues worth 173 million EUR at the end of 2020, a 88% increase compared to the previous year

Sustained growth for 2021

 

 

  • Over 240 million EUR incomes for 2021, as opposed to 190 million EUR, specified in the judicial reorganization plan
  • 62 million EUR incomes reported for T1 2021, representing an 70% increase compared to the similar period last year
  • 23 million EUR financing following a credit contract signed in March 2021
  • Exit insolvency in record time, end of 2021 as estimated

 

Romcab S.A. (BVB: MCAB) announces a turnover of 173 million EUR at the end of 2020, an increase of almost 88% compared to the previous year. In terms of profitability, 2020 marked a revival, the loss recorded by the company being 50% reduced compared to 2019. The financial statements as of December 31st 2020 are available on the company’s website: www.romcab.com – Shareholders – Shareholder Information – Annual Reports – 2020.

“The company’s activity has been marked by losses in the past four years, but Romcab managed to surpass the challenges brought by insolvency, registering a significative, constant revenue growth, from 37 million EUR in 2017 to 173 million EUR in 2020, while the firm’s producing capacity remaining constant. During the global sanitary crisis, Romcab managed to maintain its ongoing activity, 2020 marking a gain in volume compared to the period preceding the insolvency”, states Zoltan Prosszer, Romcab Special Administrator.

Romcab became insolvent following its own request at the beginning of 2017 and returned to trading on Bucharest Stock Exchange on March 4th, following the approval of the judicial reorganization plan submitted and assumed by the Special Administrator. Romcab stocks recorded a significant quotation increase, rapidly surpassing double the value before the suspension, in the context of a high trading volume.

According to the preliminary data for T1 2021, the company reported a turnover of 62 million EUR, an 70% increase compared to the similar period last year.

“For 2021, the ascending trend is undeniable. Although we are in a judicial reorganization, we managed to maintain the contracts with clients and suppliers, we have the same number of employees as we did before insolvency and we started to attract new financing sources by signing a 23 million EUR loan contract, in March 2021. We can now state we are on the right track to regaining the leader position and we estimate exiting insolvency a lot sooner than we assessed in our judicial reorganization plan. What we accomplished until now is remarkable, in a short period of time, taking into consideration that from our data less than 2% of the insolvent companies manage to get legally reorganized, adds Zoltan Prosszer, Romcab Special Administrator.

Romcab contracted a 23 million EUR loan on the 24th of March 2021, the use of funds being conditioned by three factors: concluding the judicial reorganization plan – procedure on progress at the Appeal Court in Târgu-Mureș, end of April being estimated as the final term; closing the creditors’ negotiations according to the insolvency procedure by end of May – estimated time; bonds establishment.

The company intends to invert on the market through the emissions of shares and bonds convertible in shared, free distribution of shares but also shares purchasing for employees rewarding.

The market Romcab activates on is estimated to be growing, the main drivers being the extended use of electric cars and the massive investment in the necessary infrastructure, the programs meant to promote renewable energy, along the revival of the construction segment.

 

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